The short-run Phillips curve shifts when
A)the expected unemployment rate changes and also when the expected inflation rate changes.
B)the actual inflation rate changes and also when the expected inflation rate changes.
C)the inflation rate increases and also when the unemployment rate decreases.
D)the natural unemployment rate changes and also when the expected inflation rate changes.
E)the actual unemployment rate changes and also when the expected unemployment rate changes.

Question

Quizplus · Accepted Answer

The short-run Phillips curve shifts when there is a change in the natural unemployment rate or when there is a change in the expected inflation rate, as these factors alter the trade-off between inflation and unemployment.

The Short-Run Phillips Curve Shifts When